Service Area: Statewide, except
Watauga, Avery, Mitchell, & Yancey

Purpose -
MicroLoans were developed to increase the availability of very small loans to small business borrowers. The SBA makes funds available to non-profit intermediaries which, in turn, make loans to eligible borrowers in amounts of up to $35,000.
The average loan size is $10,500. Applications are submitted to the local intermediary that makes the credit decisions.

Terms and rates -
The maximum term for a microloan is six years. However, loan terms vary according to the size of the loan, the planned use of funds, the requirements of the intermediary lender, and the needs of the small business borrower. Interest rates vary, depending on the lender and its costs the U.S. Treasury.

Collateral -
Each intermediary lender has its own requirements for extending credit and generally requires some type of collateral, and a personal guaranty from the business owner. In addition to microloans, intermediaries are required to provide technical assistance and training to their microborrowers.

Statewide Non-Lending Technical Assistance Provider:
The North Carolina Rural Center receives SBA funds to provide technical assistance and training to low-income individuals to assist them obtain financing in amounts of $35,000 or less for their small businesses. The Center helps rural people become self-sufficient by providing opportunities for self-employment and small business growth.